First home buyers victoria

The Ultimate First Home Buyer Guide Victoria (2026 Edition)

Written by Lawrence Liang - 12 January 2026

Buying your first home in Victoria is a milestone like no other. Whether you’re eyeing a modern apartment in the Melbourne CBD, a leafy family home in Wantirna, or a regional retreat in Ballarat or Geelong, the 2026 property market offers unique opportunities—but only if you know how to navigate the legal and financial landscape.

We’ve put together this comprehensive guide to help you move from "just looking" to "settled" with confidence:

Navigating the Victorian Conveyancing Process

Conveyancing is the legal transfer of property ownership from a seller to you. In Victoria, this process involves strict legal requirements, time-sensitive steps and documents that can have long-term financial and legal consequences if overlooked.

Step 1: Research and Budgeting

Before you hit the open houses, it is important to clearly define your "must-haves." This includes shortlisting suburbs that suit your lifestyle and practical needs, such as school zones, transport access and long-term capital growth potential.

  • Pro Tip: Create a realistic budget that includes your deposit, loan repayments, and on-going holding costs (rates, insurance, owners corporation fees and maintenance).

  • Pro Tip: Inspect properties in your target suburb (like Frankston or Bendigo) to get a clear understand of local pricing. This helps first home buyers quickly identify whether a property is fairly priced, undervalued or overpriced.

Step 2: The Section 32 & Contract Review

In Victoria, the Section 32 (Vendor Statement) is one of the most critical documents in any property purchase. It contains legal and planning information that is not visible during an open home inspection. You should never sign a contract or bid at auction without having the Section 32 and Contract of Sale reviewed by a licensed conveyancer.

When we review the Section 32, we may identify issues such as:

  • Unpermitted Structures: That "bonus" pergola or deck could be a legal liability. If built without a permit, the council could order its removal at your expense.

  • Easements & Covenants: These are "invisible strings" that can limit your future plans such as building a pool or extending your home later.

  • Zoning Restrictions: We check if the property’s zone conflicts with your intended use, including renovations or redevelopment.

Step 3: Protecting Your Interests

We also review and explain any special conditions added by the vendor’s legal representative to ensure they do not unfairly disadvantage you.

For private sales, we assist in drafting protective conditions that provide a safety net, including:

  • Subject to Finance: Allows you to exit the contract if your loan is not formally approved, provided the clause is properly drafted.

  • Subject to Building and Pest Inspection: Enables you to withdraw if major structural defects are identified.

Crucial Note on Auctions: In Victoria, properties purchased at auction are sold unconditionally. There is no cooling-off period and no opportunity to include finance or inspection conditions. Your finance should be pre-approved, and the Contract and Section 32 reviewed, before you raise your paddle.

Slashing Upfront Costs: First Home Buyer Grants and Stamp Duty Relief in Victoria

One of the biggest challenges for first home buyers in Victoria is managing upfront costs. The Victorian Government offers grants and stamp duty exemptions/concessions designed to reduce the deposit gap and make home ownership more achievable.

First Home Owner Grant (FHOG) - Victoria

The First Home Owner Grant in Victoria is available under the First Home Owner Grant and Home Buyer Schemes Act 2000. If you are buying or building a brand-new home (including townhouses and apartments) valued up to $750,000, you may be eligible for a $10,000 grant.

To qualify, the property must be new, meaning it has not been previously sold or lived in. This grant can be used towards your purchase costs or applied at settlement, helping first home buyers enter the market sooner.

Stamp Duty Exemptions or Concessions in Victoria

Stamp duty (also known as land transfer duty) is often the largest upfront cost when buying a property in Victoria. The Duties Act 2000 provides significant relief for eligible first home buyers:

  • Full Exemption: Pay no stamp duty when purchasing a property valued at $600,000 or less.

  • Concession: Enjoy a sliding scale discount for properties valued between $600,001 and $750,000. For example, on a $680,000 first home, the stamp duty payable after concession is $19,130, compared to the full duty of $35,870—resulting in a substantial saving.

Pro Tip: If you have previously owned an investment property, you may still qualify for the above grants or stamp duty exemptions and concessions. Eligibility depends on meeting specific additional conditions, so it is important to have your situation assessed before assuming you are ineligible.

Getting Into the Market Sooner: Government Schemes for First Home Buyers

For many first home buyers, saving a 20% deposit can feel out of reach. Fortunately, several Australian Government schemes now make it possible to enter the Victorian property market sooner with a much smaller deposit.

Australian Government 5% Deposit Scheme

Launched in October 2025, the new Australian Government 5% Deposit Scheme allows eligible buyers to purchase a home with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI).

Key features include:

  • No income caps: Recent changes have removed income limits, making the scheme accessible to more Victorian buyers.

  • Higher property price caps: The current price cap is $950,000 for Melbourne and major regional centres such as Geelong.

This scheme is particularly popular with first home buyers in Melbourne and regional Victoria who have stable income but limited savings.

To learn more, you can watch our short explainer video and FAQ video, which explain eligibility requirements, how the scheme works, and the ongoing obligations for buyers.

Help to Buy Scheme (Shared Equity)

Following the closure of the Victorian Homebuyer Fund, eligible buyers can now access the federal Help to Buy Scheme, which commenced in December 2025.

Under this shared equity scheme:

  • The Government contributes up to 40% for a new home or 30% for an existing home.

  • You only need as little as a 2% deposit.

  • The Government retains a proportional ownership share, which can be bought out over time or repaid when the property is sold.

These schemes can significantly reduce the upfront cost of buying a first home in Victoria, but eligibility rules and long-term implications vary. Getting advice early can help you choose the option that best suits your situation.

Your Questions, Answered

  • In some cases, as little as 2% to 5% of the purchase price, plus other buying costs, if you qualify for government schemes and first-home buyer stamp duty exemptions. If you only qualify for stamp duty concessions, you will need to factor in the applicable stamp duty amount.

  • Common upfront costs include conveyancing fees (around $800–$1,200), building and pest inspections if required ($400–$900), land title registration fees (approximately $1,500–$1,800 on a $600,000 purchase), and PEXA and property certificate fees ($200–$500). Loan-related costs such as application fees or LMI may also apply, depending on your lender and deposit size.

  • Yes. Stamp duty exemptions or concessions can generally be used alongside government schemes, provided you meet the eligibility criteria for each one separately.

Purchasing your first home in Victoria?
Let an experienced conveyancer guide you through every step with confidence.

Get your quote today.

Get Started